Economics 221 Exam 2 Practice Flashcards_2

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Part 2

Last updated 3:41 PM on 5/25/26
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10 Terms

1
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Bubba is a shrimp fisherman who could earn $5,000 as a fishing tour guide. Instead, he is a full-time shrimp fisherman. In calculating economic profit, the $5,000 Bubba gave up is counted as what?

Implicit costs

2
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Omar's Car Wash has AVC = $3 and AFC = $4 when producing 200 car washes. What is total cost?

$1,400

3
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<p>Refer to Table 14-8. Fixed cost is $20. What is average fixed cost when producing 5 units?</p><p></p>

Refer to Table 14-8. Fixed cost is $20. What is average fixed cost when producing 5 units?

$4

4
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<p>Refer to Figure 15-1. A competitive firm's short-run supply curve is its marginal cost curve above what point?</p><p></p>

Refer to Figure 15-1. A competitive firm's short-run supply curve is its marginal cost curve above what point?

Above $12

5
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<p>Refer to Figure 15-1. When will the firm earn negative economic profit but remain in business in the short run?</p><p></p>

Refer to Figure 15-1. When will the firm earn negative economic profit but remain in business in the short run?

When price is less than $26 but more than $12

6
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<p>Refer to Figure 15-2. If the market price is $10, what is the firm's short-run economic profit?</p><p></p>

Refer to Figure 15-2. If the market price is $10, what is the firm's short-run economic profit?

$15

7
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<p>Refer to Figure 16-5. What price will Bearclaws charge to maximize profits?</p><p></p>

Refer to Figure 16-5. What price will Bearclaws charge to maximize profits?

$14

8
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<p>Refer to Figure 16-5. How many units will Bearclaws produce to maximize profits?</p><p></p>

Refer to Figure 16-5. How many units will Bearclaws produce to maximize profits?

70 units

9
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<p>Refer to Figure 16-5. Given Bearclaws chooses the profit-maximizing price and quantity, what profit level will it obtain?</p><p></p>

Refer to Figure 16-5. Given Bearclaws chooses the profit-maximizing price and quantity, what profit level will it obtain?

$280

10
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What is Deadweight Loss

The loss of total societal value caused by a market inefficiency